The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9728

                          I N  A S S E M B L Y

                            February 6, 2020
                               ___________

Introduced by M. of A. STIRPE -- read once and referred to the Committee
  on Banks

AN  ACT  to amend the banking law, in relation to requiring transmitters
  of money to provide a certain warning to consumers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new section 652-c to
read as follows:
  §  652-C.  REQUIRED  WARNING. 1.   A PERSON ENGAGED IN THE BUSINESS OF
RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR  ELEC-
TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
TELEPHONE  OR  ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER PERSON, BUSI-
NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
THE TRANSMISSION PRIOR TO COMPLETING SUCH TRANSMISSION  OF  FUNDS.  SUCH
WARNING SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
  (A)  A  TITLE  IN  BOLD,  CAPITAL LETTERS SAYING "WARNING: DO NOT FALL
VICTIM TO CONSUMER FRAUD.";
  (B) QUESTIONS OR INFORMATION THAT ALERT A CONSUMER ABOUT  THE  DANGERS
OF  SENDING FUNDS FOR LOTTERY WINNINGS, CREDIT CARD GUARANTEES OR LOANS,
INTERNET OR PHONE OFFERS, TO PERSONS UNKNOWN TO THE CONSUMER OR  PERSONS
WHOSE IDENTITY THE CONSUMER CANNOT VERIFY AND ANY OTHER FRAUD ALERT; AND
  (C)  INFORMATION  ABOUT  HOW  TO  ASK  QUESTIONS OF THE SALES CLERK OR
REPRESENTATIVE; AND
  (D) INFORMATION ABOUT HOW TO STOP A TRANSFER.
  2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY"  MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
ELECTRONIC  MEDIUM  (SUCH  AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
NOT LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL)  THE
WARNING  SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE THE
TRANSMISSION OF FUNDS, SHALL BE IN A TYPE SIZE  SUFFICIENTLY  NOTICEABLE
FOR  AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING AND
SHALL BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH  THE
WRITTEN  WARNING  APPEARS;  AND  (B) IN ORAL COMMUNICATIONS, THE WARNING
SHALL BE DELIVERED IN A VOLUME AND CADENCE SUFFICIENT  FOR  AN  ORDINARY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD03998-01-9

A. 9728                             2

CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-
LY  THROUGH  ORAL,  WRITTEN  OR  VISUAL MEANS, THE WARNING SHALL BE MADE
THROUGH THE SAME MEANS.
  3.  THE  WARNING  REQUIRED BY THIS SECTION SHALL NOT APPLY TO AN ELEC-
TRONIC FUNDS TRANSFER IN WHICH FUNDS ARE  NOT  TRANSFERRED  DIRECTLY  TO
ANOTHER  PERSON  AND  ARE NOT AVAILABLE FOR IMMEDIATE USE, NOR SHALL ANY
WARNING BE REQUIRED IN AN ELECTRONIC FUNDS TRANSFER  MADE  WITH  A  GIFT
CERTIFICATE  AS  DEFINED  IN  SECTION  THREE HUNDRED NINETY-SIX-I OF THE
GENERAL BUSINESS LAW.
  4. A VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL  BE  PUNISHABLE
BY  A  CIVIL  PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR THE
FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
  § 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.